- Lawrence Summers drops out of running for Fed Chairman
- Syria to hand over details of stockpile
- Fed policy meeting begins Tuesday
FTSE 100: 0.65%
CAC 40: 0.66%
FTSE MIB: 0.62%
IBEX 35: 0.94%
Stoxx 600: 0.59%
European equities climbed after Lawrence Summers bowed out of the race as Federal Reserve Chairman and as fears over Syria subsided.
Summers' withdrawal from consideration to take over from Ben Bernanke as the head of the central bank, paves the way for Fed Vice Chair Janet Yellen to take over.
Yellen is a firm favourite among investors who expect she will lean towards a slower reduction of stimulus.
The Fed is tipped to announce a scaling back of its $85bn per month in bond purchases at its two-day policy meeting which kicks off on Tuesday.
The central bank has said it will begin tapering some time this year so long as it feels the US economy and jobs market has recovered sufficiently.
"The ability of the economy to show sufficient signs of improvement within the jobs markets has been a core driver of expectations and the trends appear to point towards the economy being just about accommodative to such a move," said Market Analyst Craig Erlam from Alpari.
Meanwhile, concerns over a potential military attack on Syria abated over the weekend after the US and Russia agreed that President Bashar al-Assad's regime must submit details of its stockpile of chemical weapons within a week. The weapons will then be removed and destroyed before mid-2014.
US President Barack Obama has insisted that if diplomacy failed he will push for military force against Assad's government which was accused of using chemical weapons against civilians last month.
"With the prospects of an imminent military conflagration on Syria diminishing into the distance after the weekend agreement between the US and Russia on Syria's chemical weapons, the markets would appear to have one less thing to worry about as markets begin a new week, with all eyes on this week's Federal Reserve meeting, and whether or not we will see the beginning of the long anticipated tapering programme", said Senior Market Analyst Michael Hewson from CMC Markets.
Deutsche Lufthansa, Kaba, Petra Diamonds
Deutsche Lufthansa AG's shares
rose after saying Chief Executive Officer Christoph Franz would not extend his contract.
Kaba Holding rallied after the Swiss maker of high-security locks reported an increase in full-year sales.
Petra Diamonds jumped after saying it swung to an annual profit driven by a rise in revenue and production along with tight cost control and operational expansion.
Other asset classes mixed
The euro edged up 0.48% to the 1.3358 US dollar.
Brent crude futures fell $0.576 to $111.060 per barrel on the ICE.